Applied Industrial Technologies (AIT)
Debt-to-capital ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 572,279 | 596,926 | 649,150 | 784,855 | 855,143 |
| Total stockholders’ equity | US$ in thousands | 1,688,780 | 1,458,440 | 1,149,360 | 932,546 | 843,542 |
| Debt-to-capital ratio | 0.25 | 0.29 | 0.36 | 0.46 | 0.50 |
June 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $572,279K ÷ ($572,279K + $1,688,780K)
= 0.25
The debt-to-capital ratio for Applied Industrial Technologies has exhibited a decreasing trend over the past five years, indicating a more conservative capital structure and lower reliance on debt financing. As of June 30, 2024, the debt-to-capital ratio stands at 0.25, reflecting a significant reduction from the ratio of 0.50 in June 30, 2020. This decline suggests that the company has been effectively managing its debt levels in relation to its total capital, which is a positive sign for investors and creditors. Overall, the decreasing trend in the debt-to-capital ratio indicates improved financial health and greater stability for Applied Industrial Technologies.